The innovation dividend of fiscal policy: the impact of defense spending on local innovation in U.S
This study focuses on place-based policies and how geographic concentration of innovation affects regional economic growth in the United States. The researchers will explore how local fiscal stimulus in the form of defense spending impacts both innovation and economic growth. Using contract-level data on defense spending and county-level measures of innovation, the researchers will attempt to identify through which channels defense spending affects aggregate innovation. They use Gross Domestic Product, personal income, and total employment to evaluate how defense spending affects economic growth.